Agricultural sector expects revenue of R$670 billion in 2020

The Brazilian Agriculture and Livestock Confederation (CNA) predicts a 9,8% increase in the sector's revenue in 2020, compared to 2019. The expectation is that the Gross Production Value (VBP), an index that measures revenue “ within the gate”, totaling around R$669,7 billion. For the sector's Gross Domestic Product (GDP), the forecast is for growth of 3% in 2020.

According to the entity, the main driver of revenue will be agriculture, with a forecast growth of 14,1%, equivalent to R$265,8 billion. In CNA's assessment, the prospect of increased production will make 2020 considered “the year of the sector”.

In the case of beef, the expectation is for a 22,2% expansion in GVP, reaching revenue of R$129,1 billion. For swine, an increase of 9,8% in VPB is expected. Dairy farming is expected to grow by 7,5% the VPB; and chicken, 7,1%.

According to the technical superintendent of the CNA, Bruno Lucci, “the [meat] producer will react, stimulated by the price, and will invest in technology to gain in scale”. According to him, with this, “there will be no shortage of meat in the Brazilian market”.

In 2020, agriculture's VBP is expected to grow 7,2%, reaching R$403 billion. The main highlight will be soybeans, with a forecast increase of 14,1%, ending the agricultural year (which runs from August to July) with a profit of R$ 165,2 billion. This increase is attributed to the increase in prices and production, reports CNA.

When presenting the balance of forecasts, the president of CNA, João Martins, informed that the entity is concerned about the social inequalities observed in the sector. “Less than 10% of farmers hold 84% of the sector’s income. This shows that few are benefiting from the sector’s pungency,” he warned.

To reduce this distortion, the CNA intends to facilitate access to technical assistance for these producers. The expectation is that this measure will result in the “creation of a new middle class in the sector”.